How to save money to Purchase your first Home ?

Vineet Golani

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How do I save money to purchase my first home

Before Purchasing:

Building a Budget

The first and the most important step towards buying your first home is setting a realistic budget as per your income and savings. According to your income you can look at properties that fit your budget right.

Keep a set bracket of how much you intend to spend on this transaction. This will ensure you save on both time and money.

Investing in a Reliable source

After having budgeted and decided the amount to be allocated in buying a new house, consider investing all that money in a reliable source depending on the returns you expect.

For eg: Those who are looking at secured deposits can look at investing in a fixed deposit, while those who intend achieving a higher rate of return can try Mutual Funds. We have covered more information on this topic in a blog of ours earlier which you can access here.

Finding a reasonable and well experienced Broker

A reasonable and experienced broker will always ensure that you get the best deal without shelling out too much money. His expertise will come into hand during the ongoing property transactions.

During the purchase:

Negotiate well

The next step while buying a house is an important one, as this can save you a lot of money if done right. Negotiate well on the price that the seller has to offer. Setting a firm bid price and awaiting for the selling party to get back to you will ensure more discounts for you!

Ensure that you negotiate well on closing costs too in order to avoid paying all of it by yourself.

Maintain a good credit score

Doing this will go a long way as the better your credit score is, the more likely your loan is going to be passed by the bank. Not only that, having a good credit score will ensure you get the best interest rate available in the market.

Choose the lowest interest rate

If you are opting for a home loan, make sure you make a brief comparison between top competitive banks with the industry average at 6.50%. It is advisable to close the loan at the earliest possible inorder to pay lowest interest.

There are several customised Home loan calculators available, we recommend heading to our calculator and finding out which one is the best as per your requirements.